Investments in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2014

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Joint Ventures

Investments in Unconsolidated Joint Ventures

At March 31, 2014, we were partners with third parties in four joint ventures (of which we have managing ownership interests in one), holding six office properties, comprised of 12 buildings and 1.1 million rentable square feet. One of our joint ventures also owns a sports club associated with our City Square property in Phoenix, Arizona. Our ownership interest percentages in these joint ventures range from 5.0% to 32.2%.  For some of these joint ventures, in exchange for our managing ownership interest and related equity investment, we are entitled to fees, preferential allocations of earnings and cash flows.

At March 31, 2014 and December 31, 2013, the JV Basis Differential was $(0.1) million and is included in “Investments in unconsolidated joint ventures” in the accompanying consolidated balance sheets. For each of the three month periods ended March 31, 2014 and 2013, we recognized an insignificant amount of amortization expense attributable to the JV Basis Differential, which is included in “Equity in net (loss) earnings of unconsolidated joint ventures” in the accompanying consolidated statements of operations.

We account for our investments in joint ventures under the equity method of accounting.

The following tables summarize financial information for our unconsolidated joint ventures (in thousands):

	For the three months ended March 31,
	2014			2013
Revenues:
Rental	$	3,588		$	5,524
Other	911			1,590
Total revenues	4,499			7,114
Expenses:
Rental operating	2,820			3,871
Depreciation and amortization	1,700			1,689
Interest	1,503			2,340
Other	12			—
Total expenses	6,035			7,900
Loss before gain on sale of properties and loss on extinguishment of debts	(1,536		)	(786		)
Gain on sale of properties	—			26,885
Loss on extinguishment of debts	—			(946		)
Net (loss) income	$	(1,536	)	$	25,153
Equity in net (loss) earnings of unconsolidated joint ventures	$	(111	)	$	1,059

	March 31, 2014		December 31, 2013
Investment in real estate, net	$	95,747	$	95,558
Other assets	17,687		18,509
Total assets	$	113,434	$	114,067
Mortgage and other loans	$	81,284	$	81,143
Other liabilities	4,348		4,176
Total liabilities	$	85,632	$	85,319
Investments in unconsolidated joint ventures	$	2,271	$	2,442